Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jul. 03, 2015 | Aug. 04, 2015 | |
Entity Registrant Name | LEARNING TREE INTERNATIONAL, INC. | |
Entity Central Index Key | 1,002,037 | |
Current Fiscal Year End Date | --10-02 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 13,224,349 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 3, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jul. 03, 2015 | Oct. 03, 2014 |
Total assets: | ||
Cash and cash equivalents | $ 18,682,000 | $ 29,881,000 |
Trade accounts receivable, net | 9,906,000 | 13,523,000 |
Income tax receivable | 290,000 | 583,000 |
Prepaid expenses | 3,278,000 | 2,935,000 |
Other current assets | 1,347,000 | 1,450,000 |
Current assets of continuing operations | 33,503,000 | 48,372,000 |
Current assets of discontinued operations | 0 | 4,472,000 |
Total current assets | 33,503,000 | 52,844,000 |
Equipment, Property and Leasehold Improvements: | ||
Education and office equipment | 34,855,000 | 34,100,000 |
Transportation equipment | 71,000 | 71,000 |
Property and leasehold improvements | 18,390,000 | 18,261,000 |
53,316,000 | 52,432,000 | |
Less: accumulated depreciation and amortization | (46,364,000) | (44,012,000) |
6,952,000 | 8,420,000 | |
Restricted interest-bearing investments | 3,317,000 | 3,231,000 |
Deferred income taxes. | 460,000 | 489,000 |
Other assets | 565,000 | 578,000 |
Long term assets of discontinued operations, net | 0 | 638,000 |
Total assets | 44,797,000 | 66,200,000 |
Liabilities | ||
Trade accounts payable | 6,544,000 | 6,768,000 |
Deferred revenues | 24,210,000 | 26,572,000 |
Accrued payroll, benefits and related taxes | 3,267,000 | 3,223,000 |
Other accrued liabilities | 970,000 | 2,294,000 |
Income taxes payable | 0 | 198,000 |
Current portion of deferred facilities rent and other | 1,564,000 | 1,708,000 |
Current liabilities of continuing operations | 36,555,000 | 40,763,000 |
Current liabilities of discontinued operations | 0 | 2,593,000 |
Total current liabilities | 36,555,000 | 43,356,000 |
Asset retirement obligations | 1,681,000 | 1,656,000 |
Deferred income taxes | 139,000 | 161,000 |
Deferred facilities rent and other | 2,803,000 | 3,721,000 |
Noncurrent tax liabilities | 1,173,000 | 1,262,000 |
Noncurrent liabilities of discontinued operations | 0 | 247,000 |
Total liabilities | $ 42,351,000 | $ 50,403,000 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding | $ 0 | $ 0 |
Common stock, $.0001 par value; 75,000,000 shares authorized; 13,224,349 and 13,222,539 issued and outstanding, respectively | 1,000 | 1,000 |
Additional paid-in capital | 6,205,000 | 6,148,000 |
Accumulated other comprehensive loss | (418,000) | (325,000) |
(Accumulated deficit) retained earnings | (3,342,000) | 9,973,000 |
Total stockholders' equity | 2,446,000 | 15,797,000 |
Total liabilities and stockholders' equity | $ 44,797,000 | $ 66,200,000 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jul. 03, 2015 | Oct. 03, 2014 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 13,224,349 | 13,222,539 |
Common stock, shares outstanding (in shares) | 13,224,349 | 13,222,539 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Revenues | $ 22,703,000 | $ 25,718,000 | $ 69,255,000 | $ 77,012,000 |
Cost of revenues | 14,361,000 | 14,532,000 | 42,049,000 | 44,655,000 |
Gross profit | 8,342,000 | 11,186,000 | 27,206,000 | 32,357,000 |
Operating expenses: | ||||
Course development | 2,575,000 | 1,813,000 | 6,395,000 | 5,398,000 |
Sales and marketing | 5,387,000 | 5,638,000 | 16,999,000 | 16,475,000 |
General and administrative | 4,420,000 | 6,599,000 | 14,275,000 | 16,774,000 |
12,382,000 | 14,050,000 | 37,669,000 | 38,647,000 | |
Loss from operations | (4,040,000) | (2,864,000) | (10,463,000) | (6,290,000) |
Other income (expense): | ||||
Interest income, net | 16,000 | 1,000 | 27,000 | 29,000 |
Foreign exchange gains (losses) | (52,000) | 20,000 | 336,000 | (102,000) |
Other, net | (5,000) | (3,000) | (17,000) | (1,000) |
(41,000) | 18,000 | 346,000 | (74,000) | |
Loss from continuing operations before provision for income taxes | (4,081,000) | (2,846,000) | (10,117,000) | (6,364,000) |
Provision for income taxes | 222,000 | 104,000 | 432,000 | 498,000 |
Loss from continuing operations | (4,303,000) | (2,950,000) | (10,549,000) | (6,862,000) |
Discontinued operations (Note 12) | ||||
Income (loss) from discontinued operations, net of tax | 0 | 204,000 | (264,000) | 242,000 |
Loss on disposal of discontinued segment | 0 | 0 | (2,501,000) | 0 |
Income (loss) from discontinued operations, net of tax | 0 | 204,000 | (2,765,000) | 242,000 |
Net loss | $ (4,303,000) | $ (2,746,000) | $ (13,314,000) | $ (6,620,000) |
Earnings (loss) per share basic and diluted: | ||||
Continuing operations (in dollars per share) | $ (0.33) | $ (0.22) | $ (0.80) | $ (0.52) |
Discontinued operations (in dollars per share) | 0 | 0.01 | (0.21) | 0.02 |
Basic and diluted loss per share (in dollars per share) | $ (0.33) | $ (0.21) | $ (1.01) | $ (0.50) |
Weighted average shares outstanding: | ||||
Weighted average shares - basic (in shares) | 13,224 | 13,223 | 13,224 | 13,221 |
Weighted average shares - diluted (in shares) | 13,224 | 13,223 | 13,224 | 13,221 |
Comprehensive income (loss): | ||||
Net loss | $ (4,303,000) | $ (2,746,000) | $ (13,314,000) | $ (6,620,000) |
Foreign currency translation adjustments | 251,000 | 96,000 | (93,000) | 301,000 |
Comprehensive loss | $ (4,052,000) | $ (2,650,000) | $ (13,407,000) | $ (6,319,000) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Jul. 03, 2015 | Jun. 27, 2014 | |
Net loss | $ (13,314,000) | $ (6,620,000) |
Add: Loss on sale of France Unit | 2,501,000 | 0 |
Loss (Income) from discontinued operations, net of tax | 264,000 | (242,000) |
Loss from continuing operations | (10,549,000) | (6,862,000) |
Adjustments to reconcile net loss from continuing operations to net cash used by continuing operating activities: | ||
Depreciation and amortization | 3,515,000 | 3,951,000 |
Share-based compensation | 57,000 | 309,000 |
Deferred income taxes | 103,000 | 428,000 |
Provision for doubtful accounts | 28,000 | 19,000 |
Accretion expense | 59,000 | 68,000 |
Loss (gain) on disposal of equipment, property and leasehold improvements | 11,000 | (12,000) |
Unrealized foreign exchange gains | (331,000) | (213,000) |
Settlement of asset retirement obligation | 0 | (186,000) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 3,497,000 | (1,518,000) |
Prepaid expenses and other assets | (407,000) | 538,000 |
Income tax receivable / payable | (137,000) | 50,000 |
Trade accounts payable | 202,000 | 1,069,000 |
Deferred revenues | (1,751,000) | (1,398,000) |
Deferred facilities rent and other | (1,032,000) | (867,000) |
Asset retirement obligation | 0 | 0 |
Other accrued liabilities | (2,028,000) | 719,000 |
Net cash used in operating activities of continuing operations | (8,763,000) | (3,905,000) |
Net cash used in operating activities of discontinued operations | (206,000) | (88,000) |
Net cash used in operating activities | (8,969,000) | (3,993,000) |
Cash flows - investing activities: | ||
Purchases of equipment, property and leasehold improvements | (2,260,000) | (1,131,000) |
Proceeds from sale of equipment, property and leasehold improvements | 20,000 | 29,000 |
Net cash used in investing activities of continuing operations | (2,240,000) | (1,102,000) |
Net cash used in investing activities of discontinued operations | (745,000) | (113,000) |
Net cash used in investing activities | (2,985,000) | (1,215,000) |
Cash flows - financing activities: | ||
Shares surrendered in lieu of tax withholding | 0 | (2,000) |
Net cash used in financing activities | 0 | (2,000) |
Effects of exchange rate changes on cash and cash equivalents of continuing operations | (196,000) | 227,000 |
Effects of exchange rate changes on cash and cash equivalents of discontinued operations | (246,000) | (9,000) |
Effects of exchange rate changes on cash and cash equivalents of continuing operations | (442,000) | 218,000 |
Net change in cash and cash equivalents of discontinued operations | (1,197,000) | (210,000) |
Net decrease in cash and cash equivalents of continuing operations | (11,199,000) | (4,782,000) |
Cash and cash equivalents at the beginning of the period | 29,881,000 | 24,899,000 |
Cash and cash equivalents at the end of the period | $ 18,682,000 | $ 20,117,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1—BASIS OF PRESENTATION The accompanying unaudited interim condensed consolidated financial statements of Learning Tree International, Inc. and our subsidiaries (collectively, “Learning Tree,” “we,” “our” or “us”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and, therefore, omit or condense certain note disclosures and other information required by accounting principles generally accepted in the United States of America for complete financial statements. These financial statements should therefore be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended October 3, 2014. We use the 52/53-week fiscal year method to better align our external financial reporting with the manner in which we operate our business. Under this method, each fiscal quarter ends on the Friday closest to the end of the calendar quarter. Accordingly, our third quarter of the current fiscal year ended on July 3, 2015 and encompassed 13 weeks, while our third quarter of the prior fiscal year ended on June 27, 2014 and also encompassed 13 weeks. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, that are only of a normal recurring nature, considered necessary to present fairly our financial position as of July 3, 2015, and our results of operations for the three months and nine months ended July 3, 2015 and June 27, 2014, and our cash flows for the nine months ended July 3, 2015 and June 27, 2014. Certain items in the condensed consolidated financial statements have been reclassified to conform to the current presentation. |
Note 2 - Stock-Based Compensati
Note 2 - Stock-Based Compensation | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 2—SHARE-BASED COMPENSATION Share-based compensation expense related to grants of employee stock options and restricted stock units was less than $0.1 million for both the three months ended July 3, 2015 and June 27, 2014, and was charged in a manner consistent with the related employee salary costs. Shared-based compensation expense for the nine months ended July 3, 2015 was less than $0.1 million compared to $0.3 million for the nine months ended June 27, 2014. |
Note 3 - Asset Retirement Oblig
Note 3 - Asset Retirement Obligations | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | NOTE 3—ASSET RETIREMENT OBLIGATIONS The following table presents the activity for the asset retirement obligations (“ARO”) liabilities from continuing operations, which are primarily related to the restoration of classroom facilities in our Learning Tree Education Centers: Nine months ended Year ended July 3, 2015 October 3, 2014 ARO balance, beginning of period $ 1,656 $ 1,766 Accretion expense 59 89 Settlement of ARO liability 0 (186 ) Foreign currency translation (34 ) (13 ) ARO balance, end of period $ 1,681 $ 1,656 |
Note 4 - Earnings (Loss) Per Sh
Note 4 - Earnings (Loss) Per Share | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 4—EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding (which excludes unvested shares of our common stock granted under our 2007 Equity Incentive Plan) during the reporting period. Diluted earnings (loss) per share is computed similarly to basic earnings (loss) per share except that the weighted average shares outstanding are increased to include common stock equivalents, to the extent their effect is dilutive. Approximately 250,000 stock options were excluded from the computations of diluted earnings per share for the three and nine month periods ended July 3, 2015 and approximately 200,000 stock options were excluded for the three and nine month periods ended June 27, 2014, because their effect would have been anti-dilutive. The computations for basic and diluted earnings per share are as follows: Three months ended Nine months ended July 3, 2015 June 27, 2014 July 3, 2015 June 27, 2014 Numerator: Loss from continuing operations $ (4,303 ) $ (2,950 ) $ (10,549 ) $ (6,862 ) Income (loss) from discontinued operations - 204 (2,765 ) 242 Net loss $ (4,303 ) $ (2,746 ) $ (13,314 ) $ (6,620 ) Denominator: Weighted average shares outstanding Basic 13,224 13,223 13,224 13,221 Effect of dilutive securities 0 0 0 0 Diluted $ 13,224 $ 13,223 $ 13,224 $ 13,221 (Loss) income per common share - basic and diluted: Continuing operations $ (0.33 ) $ (0.22 ) $ (0.80 ) $ (0.52 ) Discontinued operations - 0.01 (0.21 ) 0.02 Basic and diluted loss per share $ (0.33 ) $ (0.21 ) $ (1.01 ) $ (0.50 ) |
Note 5 - Income Taxes
Note 5 - Income Taxes | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 5—INCOME TAXES Our income tax provision for continuing operations in our third quarter of fiscal year 2015 was $0.2 million, as compared to $0.1 million in our third quarter of fiscal year 2014. Our income tax provision for continuing operations for our first nine months of fiscal year 2015 was $0.4 million, as compared to $0.5 million for the first nine months of fiscal year 2014. Our third quarter and nine months to date 2015 and 2014 income tax provisions are composed primarily of income tax expense for our foreign subsidiaries and an adjustment of our U.S. income tax expense for fiscal year 2014 to reflect a true up of the actual return to provision estimates. Learning Tree established a valuation allowance against deferred tax assets in the U.S. in the third quarter of fiscal year 2012 and has continued to maintain a full valuation allowance in the U.S. through the third quarter of fiscal year 2015. |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 6—COMMITMENTS AND CONTINGENCIES Contingencies Currently, and from time to time, we are involved in litigation incidental to the conduct of our business. We are not a party to any lawsuit or legal proceeding that, in the opinion of management, is likely to have a material adverse effect on our consolidated financial position or results of operations. |
Note 7 - Segment Reporting
Note 7 - Segment Reporting | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 7—SEGMENT REPORTING Our worldwide operations involve the design and delivery of instructor-led classroom training courses and related services to multinational companies and government entities. The training and education we offer is presented in a consistent manner in every country in which we operate. Our instructors present our courses in a virtually identical fashion worldwide, regardless of whether presented in leased classroom space or external facilities, the content of the class being taught or the location or method of distribution. No one commercial customer or government agency accounted for 10% or more of our revenues in the three and nine month periods ended July 3, 2015 or June 27, 2014. We conduct and manage our business globally and have reportable segments that operate in five countries: the United States, Canada, the United Kingdom, Sweden and Japan. On March 3, 2015, Learning Tree completed the sale of its subsidiary in France, Learning Tree International S.A. (“LTRE(FR)”) to Educinvest SPRL (“Educinvest”) (the “Sale Transaction”). Our business in France is now limited to receiving a license fee for course content licensed to Educinvest. See Note 12 “Discontinued Operations” for additional information. Summarized financial information by country for the three months and nine months ended July 3, 2015 and June 27, 2014 from continuing operations are as follows: Three months ended Nine months ended July 3, June 27, July 3, June 27, 2015 2014 2015 2014 Revenues: United States $ 15,147 $ 14,925 $ 40,621 $ 40,329 Canada 1,392 2,047 6,681 8,824 North America 16,539 16,972 47,302 49,153 United Kingdom 4,878 6,872 16,831 21,205 Sweden 822 1,391 3,770 5,187 Japan 464 483 1,352 1,467 Total $ 22,703 $ 25,718 $ 69,255 $ 77,012 Gross profit: United States $ 5,464 $ 5,948 $ 14,211 $ 13,818 Canada 594 1,090 3,399 5,264 North America 6,058 7,038 17,610 19,082 United Kingdom 1,580 3,052 6,357 9,069 Sweden 393 781 2,354 3,221 Japan 311 315 885 985 Total $ 8,342 $ 11,186 $ 27,206 $ 32,357 July 3, June 27, 2015 2014 Total assets: United States $ 23,254 $ 29,931 Canada 3,859 4,024 North America 27,113 33,955 United Kingdom 12,604 16,124 Sweden 3,591 5,022 Japan 1,489 1,652 Total $ 44,797 $ 56,753 |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 8—STOCKHOLDERS’ EQUITY During the three and nine months ended July 3, 2015 and June 27, 2014 we did not repurchase any shares of our common stock. |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 9—FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market for the asset or liability. The fair value is measured using assumptions that market participants would use, including assumptions about nonperformance risk and credit risk. ASC 820 establishes a fair value hierarchy for valuation inputs and prioritizes them based on the extent to which the inputs are observable in the marketplace. Categorization is based on the lowest level of input that is available and significant to the measurement. These levels are: Level 1—Quoted prices in active markets for identical assets and liabilities. Level 2—Observable inputs other than quoted prices in active markets, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market corroborated inputs. Level 3—Unobservable inputs that reflect management’s assumptions about the estimates and risks that market participants would use in pricing the asset or liability. Non-Financial Liabilities Measured at Fair Value on a Nonrecurring Basis We measure our ARO liabilities at fair value on a nonrecurring basis when we believe there has been an indication the fair value has changed. We did not adjust the values of those liabilities during the three months and nine months ended July 3, 2015 and June 27, 2014. |
Note 10 - Deferred Facilities R
Note 10 - Deferred Facilities Rent and Other | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Deferred Facilities Rent and Other [Text Block] | NOTE 10—DEFERRED FACILITIES RENT AND OTHER Deferred Facilities Rent and Other The following tables show details of the following line items in our consolidated balance sheets: Current Portion of Deferred Facilities Rent and Other July 3, October 3, 2015 2014 Deferred rent $ 1,101 $ 1,050 LA lease liability 463 658 $ 1,564 $ 1,708 Deferred Facilities Rent and Other July 3, October 3, 2015 2014 Deferred rent $ 2,803 $ 3,420 LA lease liability 0 301 $ 2,803 $ 3,721 |
Note 11 - Recent Accounting Pro
Note 11 - Recent Accounting Pronouncements | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | NOTE 11—RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) In April 2014, the FASB issued ASU No. 2014-08, “ Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” Other recent accounting pronouncements issued by the FASB (including the Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or management believes will not, have a material impact on our present or future consolidated financial statements. |
Note 12 - Discontinued Operatio
Note 12 - Discontinued Operations | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 12—DISCONTINUED OPERATIONS On March 3, 2015, we entered into an Agreement (“Agreement”) to sell our subsidiary in France, LTRE(FR), to Educinvest for consideration of €1 (One Euro). The Sale Transaction was consummated on the same date that the Agreement was signed by the parties. The purchase price was established in recognition of the potential liabilities being assumed by Educinvest related to continuation of the LTRE(FR) business. As part of the Sale Transaction, Learning Tree and Educinvest concurrently entered into a license agreement, dated March 3, 2015 (the “License Agreement”). After the closing of the Sale Transaction, we agreed to provide certain temporary services to Educinvest, including the use of its website and the operational systems in place for a period of two years after the closing date. In connection with the Sale Transaction, we also agreed that during the term of the License Agreement we will not, without the prior written consent of Educinvest, (i) establish a physical presence in mainland France in competition with the business of LTRE(FR) as carried on as of the closing of the Sale Transaction or (ii) solicit employees of LTRE(FR), except for persons responding to general recruitment advertisements not specifically targeting LTRE(FR). The sale of LTRE(FR) resulted in a loss of $2.5 million. This loss plus the results of operations for LTRE(FR) for the nine months ended July 3, 2015 and the three and nine months ended June 27, 2014 have been reclassified to the income (loss) from discontinued operations line on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) presented herein. In addition, historical Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Cash Flow amounts have also been reclassified as discontinued operations. Calculation of the loss on disposal of LTRE(FR): (in thousands) Investment in Learning Tree International S.A. $ 1,324 Costs of sale 619 Cumulative translation adjustment realized 558 Loss on sale $ 2,501 The assets and liabilities classified as discontinued operations in our condensed consolidated balance sheet for the fiscal year ended October 3, 2014 are set forth below. There were no assets or liabilities classified as discontinued operations as of July 3, 2015. October 3, 2014 Assets Current Assets: Cash and cash equivalents $ 1,197 Trade accounts receivable, net 2,700 Other current assets 575 Total current assets 4,472 Equipment, Property and Leasehold Improvements: Property and leasehold improvements 6,453 Less: accumulated depreciation and amortization (5,986 ) 467 Other assets 171 Total long term assets 638 Total assets $ 5,110 Liabilities Current Liabilities: Trade accounts payable $ 1,141 Accrued payroll, benefits and related taxes 1,224 Other accrued liabilities 228 Total current liabilities 2,593 Asset retirement obligations 224 Deferred facilities rent and other 23 Total long term assets 247 Total liabilities $ 2,840 The summarized operating results of LTRE(FR) included in our Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) are as follows: Three months ended Nine months ended July 3, June 27, July 3, June 27, 2015 2014 2015 2014 Revenues $ 0 $ 3,041 $ 3,335 $ 8,773 Cost of revenues 0 1,600 2,046 4,536 Gross profit 0 1,441 1,289 4,237 Operating expenses 0 1,269 1,626 4,003 Income (loss) from operations 0 172 (337 ) 234 Other income (expense) net 0 4 (44 ) 13 Income (loss) from discontinued operation before income taxes $ 0 $ 176 $ (381 ) $ 247 |
Note 13 - Restructing Activity
Note 13 - Restructing Activity | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 13—RESTRUCTURING ACTIVITY In September 2012, we announced a worldwide reduction in our workforce involving approximately 40 employees and our intention to close the Los Angeles, California, office facility, which closure was completed in the first quarter of fiscal year 2013. In fiscal year 2013, we recorded a restructuring charge of $1.3 million for the estimated liability associated with future rentals due under the property lease as of the cease use date and for employee severance costs for those employees who chose not to relocate to our offices in Virginia. The fair value of the lease liability at the cease use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals, discounted using a credit adjusted risk free rate. In June 2014, we re-evaluated the estimated sublease rentals as we have been unable to find a subtenant for the Los Angeles office facility. As a result, we recorded an additional $0.5 million restructuring charge in our third quarter of fiscal year 2014. No restructuring charges were recorded during the three and nine months ended July 3, 2015. |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 9 Months Ended |
Jul. 03, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 14—SUBSEQUENT EVENTS We have evaluated all events subsequent to the balance sheet date of July 3, 2015 through the date these condensed consolidated financial statements were filed with the SEC, and have determined that the following subsequent event should be disclosed: On July 13, 2015, we notified The NASDAQ Stock Market LLC (“NASDAQ”) that our shares of common stock would be delisted from the NASDAQ Global Market (“Global Market”) since we no longer satisfied the Global Market’s listing requirements. In connection with the delisting of our common stock from the Global Market, Learning Tree applied to have its common stock quoted on the OTCQX US Market (“OTCQX”). On July 23, 2015, our common stock began trading on the OTCQX market. The trading symbol for Learning Tree’s common stock continues to be “LTRE.” Concurrently, on July 23, 2015, we filed a notification of removal from listing on the Nasdaq Stock Market and deregistration of our common stock under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on Form 25 with the SEC. |
Note 3 - Asset Retirement Obl20
Note 3 - Asset Retirement Obligations (Tables) | 9 Months Ended |
Jul. 03, 2015 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Nine months ended Year ended July 3, 2015 October 3, 2014 ARO balance, beginning of period $ 1,656 $ 1,766 Accretion expense 59 89 Settlement of ARO liability 0 (186 ) Foreign currency translation (34 ) (13 ) ARO balance, end of period $ 1,681 $ 1,656 |
Note 4 - Earnings (Loss) Per 21
Note 4 - Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Jul. 03, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Nine months ended July 3, 2015 June 27, 2014 July 3, 2015 June 27, 2014 Numerator: Loss from continuing operations $ (4,303 ) $ (2,950 ) $ (10,549 ) $ (6,862 ) Income (loss) from discontinued operations - 204 (2,765 ) 242 Net loss $ (4,303 ) $ (2,746 ) $ (13,314 ) $ (6,620 ) Denominator: Weighted average shares outstanding Basic 13,224 13,223 13,224 13,221 Effect of dilutive securities 0 0 0 0 Diluted $ 13,224 $ 13,223 $ 13,224 $ 13,221 (Loss) income per common share - basic and diluted: Continuing operations $ (0.33 ) $ (0.22 ) $ (0.80 ) $ (0.52 ) Discontinued operations - 0.01 (0.21 ) 0.02 Basic and diluted loss per share $ (0.33 ) $ (0.21 ) $ (1.01 ) $ (0.50 ) |
Note 7 - Segment Reporting (Tab
Note 7 - Segment Reporting (Tables) | 9 Months Ended |
Jul. 03, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three months ended Nine months ended July 3, June 27, July 3, June 27, 2015 2014 2015 2014 Revenues: United States $ 15,147 $ 14,925 $ 40,621 $ 40,329 Canada 1,392 2,047 6,681 8,824 North America 16,539 16,972 47,302 49,153 United Kingdom 4,878 6,872 16,831 21,205 Sweden 822 1,391 3,770 5,187 Japan 464 483 1,352 1,467 Total $ 22,703 $ 25,718 $ 69,255 $ 77,012 Gross profit: United States $ 5,464 $ 5,948 $ 14,211 $ 13,818 Canada 594 1,090 3,399 5,264 North America 6,058 7,038 17,610 19,082 United Kingdom 1,580 3,052 6,357 9,069 Sweden 393 781 2,354 3,221 Japan 311 315 885 985 Total $ 8,342 $ 11,186 $ 27,206 $ 32,357 |
Assets by Geographic Areas [Table Text Block] | July 3, June 27, 2015 2014 Total assets: United States $ 23,254 $ 29,931 Canada 3,859 4,024 North America 27,113 33,955 United Kingdom 12,604 16,124 Sweden 3,591 5,022 Japan 1,489 1,652 Total $ 44,797 $ 56,753 |
Note 10 - Deferred Facilities23
Note 10 - Deferred Facilities Rent and Other (Tables) | 9 Months Ended |
Jul. 03, 2015 | |
Notes Tables | |
Schedule of Current Portion of Deferred Facilities Rent and Other [Table Text Block] | July 3, October 3, 2015 2014 Deferred rent $ 1,101 $ 1,050 LA lease liability 463 658 $ 1,564 $ 1,708 |
Schedule of Long Term Portion of Deferred Facilities Rent and Other [Table Text Block] | July 3, October 3, 2015 2014 Deferred rent $ 2,803 $ 3,420 LA lease liability 0 301 $ 2,803 $ 3,721 |
Note 12 - Discontinued Operat24
Note 12 - Discontinued Operations (Tables) | 9 Months Ended |
Jul. 03, 2015 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Calculation of the loss on disposal of LTRE(FR): (in thousands) Investment in Learning Tree International S.A. $ 1,324 Costs of sale 619 Cumulative translation adjustment realized 558 Loss on sale $ 2,501 |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Table Text Block] | October 3, 2014 Assets Current Assets: Cash and cash equivalents $ 1,197 Trade accounts receivable, net 2,700 Other current assets 575 Total current assets 4,472 Equipment, Property and Leasehold Improvements: Property and leasehold improvements 6,453 Less: accumulated depreciation and amortization (5,986 ) 467 Other assets 171 Total long term assets 638 Total assets $ 5,110 Liabilities Current Liabilities: Trade accounts payable $ 1,141 Accrued payroll, benefits and related taxes 1,224 Other accrued liabilities 228 Total current liabilities 2,593 Asset retirement obligations 224 Deferred facilities rent and other 23 Total long term assets 247 Total liabilities $ 2,840 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Table Text Block] | Three months ended Nine months ended July 3, June 27, July 3, June 27, 2015 2014 2015 2014 Revenues $ 0 $ 3,041 $ 3,335 $ 8,773 Cost of revenues 0 1,600 2,046 4,536 Gross profit 0 1,441 1,289 4,237 Operating expenses 0 1,269 1,626 4,003 Income (loss) from operations 0 172 (337 ) 234 Other income (expense) net 0 4 (44 ) 13 Income (loss) from discontinued operation before income taxes $ 0 $ 176 $ (381 ) $ 247 |
Note 2 - Stock-Based Compensa25
Note 2 - Stock-Based Compensation (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.3 |
Note 3 - Asset Retirement Obl26
Note 3 - Asset Retirement Obligations - Asset Retirement Obligations Liabilities Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Jul. 03, 2015 | Jun. 27, 2014 | Oct. 03, 2014 | |
ARO balance, beginning of period | $ 1,656,000 | $ 1,766,000 | $ 1,766,000 |
Accretion expense | 59,000 | 68,000 | 89,000 |
Settlement of ARO liability | 0 | $ 186,000 | (186,000) |
Foreign currency translation | (34,000) | (13,000) | |
ARO balance, end of period | $ 1,681,000 | $ 1,656,000 |
Note 4 - Earnings (Loss) Per 27
Note 4 - Earnings (Loss) Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Equity Option [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 250,000 | 200,000 | 250,000 | 200,000 |
Note 4 - Earnings (Loss) Per 28
Note 4 - Earnings (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Loss from continuing operations | $ (4,303,000) | $ (2,950,000) | $ (10,549,000) | $ (6,862,000) |
Income (loss) from discontinued operations | 0 | 204,000 | (2,765,000) | 242,000 |
Net loss | $ (4,303,000) | $ (2,746,000) | $ (13,314,000) | $ (6,620,000) |
Weighted average shares outstanding: | ||||
Weighted average shares - basic (in shares) | 13,224,000 | 13,223,000 | 13,224,000 | 13,221,000 |
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 0 |
Diluted (in shares) | 13,224,000 | 13,223,000 | 13,224,000 | 13,221,000 |
Earnings (loss) per share basic and diluted: | ||||
Continuing operations (in dollars per share) | $ (0.33) | $ (0.22) | $ (0.80) | $ (0.52) |
Discontinued operations (in dollars per share) | 0.01 | (0.21) | 0.02 | |
Basic and diluted loss per share (in dollars per share) | $ (0.33) | $ (0.21) | $ (1.01) | $ (0.50) |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Income Tax Examination [Line Items] | ||||
Income Tax Expense (Benefit) | $ 222,000 | $ 104,000 | $ 432,000 | $ 498,000 |
Note 7 - Segment Reporting - Fi
Note 7 - Segment Reporting - Financial Information by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
UNITED STATES | ||||
Revenues: | ||||
Revenues | $ 15,147 | $ 14,925 | $ 40,621 | $ 40,329 |
Gross profit: | ||||
Gross porfit | 5,464 | 5,948 | 14,211 | 13,818 |
CANADA | ||||
Revenues: | ||||
Revenues | 1,392 | 2,047 | 6,681 | 8,824 |
Gross profit: | ||||
Gross porfit | 594 | 1,090 | 3,399 | 5,264 |
North America [Member] | ||||
Revenues: | ||||
Revenues | 16,539 | 16,972 | 47,302 | 49,153 |
Gross profit: | ||||
Gross porfit | 6,058 | 7,038 | 17,610 | 19,082 |
UNITED KINGDOM | ||||
Revenues: | ||||
Revenues | 4,878 | 6,872 | 16,831 | 21,205 |
Gross profit: | ||||
Gross porfit | 1,580 | 3,052 | 6,357 | 9,069 |
SWEDEN | ||||
Revenues: | ||||
Revenues | 822 | 1,391 | 3,770 | 5,187 |
Gross profit: | ||||
Gross porfit | 393 | 781 | 2,354 | 3,221 |
JAPAN | ||||
Revenues: | ||||
Revenues | 464 | 483 | 1,352 | 1,467 |
Gross profit: | ||||
Gross porfit | 311 | 315 | 885 | 985 |
Revenues | 22,703 | 25,718 | 69,255 | 77,012 |
Gross porfit | $ 8,342 | $ 11,186 | $ 27,206 | $ 32,357 |
Note 7 - Segment Reporting - As
Note 7 - Segment Reporting - Assets (Details) - USD ($) | Jul. 03, 2015 | Jun. 27, 2014 |
UNITED STATES | ||
Total assets: | ||
Assets | $ 23,254,000 | $ 29,931,000 |
CANADA | ||
Total assets: | ||
Assets | 3,859,000 | 4,024,000 |
North America [Member] | ||
Total assets: | ||
Assets | 27,113,000 | 33,955,000 |
UNITED KINGDOM | ||
Total assets: | ||
Assets | 12,604,000 | 16,124,000 |
SWEDEN | ||
Total assets: | ||
Assets | 3,591,000 | 5,022,000 |
JAPAN | ||
Total assets: | ||
Assets | 1,489,000 | 1,652,000 |
Assets | $ 44,797,000 | $ 56,753,000 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Class of Stock [Line Items] | ||||
Stock Repurchased During Period, Shares | 0 | 0 | 0 | 0 |
Note 10 - Deferred Facilities33
Note 10 - Deferred Facilities Rent And Other - Current Portion of Deferred Facilities Rent and Other (Details) - USD ($) $ in Thousands | Jul. 03, 2015 | Oct. 03, 2014 |
Deferred rent | $ 1,101 | $ 1,050 |
LA lease liability | 463 | 658 |
$ 1,564 | $ 1,708 |
Note 10 - Deferred Facilities34
Note 10 - Deferred Facilities Rent And Other - Deferred Facilities Rent and Other (Details) - USD ($) | Jul. 03, 2015 | Oct. 03, 2014 |
Deferred rent | $ 2,803,000 | $ 3,420,000 |
LA lease liability | 0 | 301,000 |
$ 2,803,000 | $ 3,721,000 |
Note 12 - Discontinued Operat35
Note 12 - Discontinued Operations (Details Textual) | Mar. 03, 2015USD ($) | Jul. 03, 2015USD ($) | Jun. 27, 2014USD ($) | Jul. 03, 2015USD ($) | Jun. 27, 2014USD ($) | Mar. 03, 2015EUR (€) |
Learning Tree International S.A. [Member] | ||||||
Disposal Group, Including Discontinued Operation, Consideration | € | € 1 | |||||
Discontinued Operation, Period of Continuing Involvement after Disposal | 2 years | |||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ (2,500,000) | |||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | $ 2,501,000 | $ 0 | $ 0 | $ (2,501,000) | $ 0 |
Note 12 - Discontinued Operat36
Note 12 - Discontinued Operations - Calculation of the Loss On Disposal (Details) - USD ($) | Mar. 03, 2015 |
Calculation of the loss on disposal of LTRE(FR): | |
Investment in Learning Tree International S.A. | $ 1,324,000 |
Costs of sale | 619,000 |
Cumulative translation adjustment realized | 558,000 |
Loss on sale | $ 2,501,000 |
Note 12 - Discontinued Operat37
Note 12 - Discontinued Operations - Condensed Balance Sheet (Details) - USD ($) | Oct. 03, 2014 |
Learning Tree International S.A. [Member] | |
Current Assets: | |
Cash and cash equivalents | $ 1,197,000 |
Trade accounts receivable, net | 2,700,000 |
Other current assets | 575,000 |
Total current assets | 4,472,000 |
Equipment, Property and Leasehold Improvements: | |
Property and leasehold improvements | 6,453,000 |
Less: accumulated depreciation and amortization | (5,986,000) |
467,000 | |
Other assets | 171,000 |
Total long term assets | 638,000 |
Assets | 5,110,000 |
Current Liabilities: | |
Trade accounts payable | 1,141,000 |
Accrued payroll, benefits and related taxes | 1,224,000 |
Other accrued liabilities | 228,000 |
Total current liabilities | 2,593,000 |
Asset retirement obligations | 224,000 |
Deferred facilities rent and other | 23,000 |
Total long term assets | 247,000 |
Total liabilities | 2,840,000 |
Cash and cash equivalents | 29,881,000 |
Trade accounts receivable, net | 13,523,000 |
Other current assets | 1,450,000 |
Total current assets | 52,844,000 |
Property and leasehold improvements | 52,432,000 |
Less: accumulated depreciation and amortization | (44,012,000) |
8,420,000 | |
Other assets | 578,000 |
Assets | 66,200,000 |
Trade accounts payable | 6,768,000 |
Accrued payroll, benefits and related taxes | 3,223,000 |
Other accrued liabilities | 2,294,000 |
Total current liabilities | 43,356,000 |
Asset retirement obligations | 1,656,000 |
Deferred facilities rent and other | 3,721,000 |
Total liabilities | $ 50,403,000 |
Note 12 - Discountinued Operati
Note 12 - Discountinued Operations - Condensed Income Statement (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Learning Tree International S.A. [Member] | ||||
Revenues | $ 0 | $ 3,041,000 | $ 3,335,000 | $ 8,773,000 |
Cost of revenues | 0 | 1,600,000 | 2,046,000 | 4,536,000 |
Gross porfit | 0 | 1,441,000 | 1,289,000 | 4,237,000 |
Operating expenses | 0 | 1,269,000 | 1,626,000 | 4,003,000 |
Income (loss) from operations | 0 | 172,000 | (337,000) | 234,000 |
Other income (expense) net | 0 | 4,000 | (44,000) | 13,000 |
Income (loss) from discontinued operation before income taxes | 0 | 176,000 | (381,000) | 247,000 |
Revenues | 22,703,000 | 25,718,000 | 69,255,000 | 77,012,000 |
Cost of revenues | 14,361,000 | 14,532,000 | 42,049,000 | 44,655,000 |
Gross porfit | 8,342,000 | 11,186,000 | 27,206,000 | 32,357,000 |
Operating expenses | 12,382,000 | 14,050,000 | 37,669,000 | 38,647,000 |
Income (loss) from operations | (4,040,000) | (2,864,000) | (10,463,000) | (6,290,000) |
Other income (expense) net | $ (5,000) | $ (3,000) | $ (17,000) | $ (1,000) |
Note 13 - Restructing Activity
Note 13 - Restructing Activity (Details Textual) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Jul. 03, 2015USD ($) | Jun. 27, 2014USD ($) | Jul. 03, 2015USD ($) | Sep. 27, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 0 | $ 500,000 | $ 0 | $ 1,300,000 | |
Restructuring and Related Cost, Number of Positions Eliminated | 40 | ||||
Restructuring Charges | $ 0 | $ 500,000 | $ 0 | $ 1,300,000 |